The housing market in the U.S. is showing signs of revival as a gauge of pending existing-home sales saw a significant increase in June after months of stagnation. Despite high prices and borrowing costs, buyers seem undeterred as they seek to either relocate or upgrade their current homes. The National Association of REALTORS® reported a 4.8% rise in the index of contract signings, reaching 74.3 in June, with all four major regions experiencing growth.
Here are some key points to consider from this positive development:
- The increase in contract signings signifies a growing interest from buyers, indicating a potential shift in the housing market.
- This rise in pending sales follows a period of record lows, dating back to 2001, demonstrating a reversal in the prolonged slump the market has faced.
- The recent decline in mortgage rates has encouraged more homeowners to list their properties, which is expected to increase sales activity in the near future.
Lawrence Yun, the Chief Economist at NAR, commented on the situation stating, “The rise in housing inventory is beginning to lead to more contract signings,” suggesting that more supply will enter the market in the coming months. This shift is expected to ease the intensity of multiple offers and create a more favorable position for buyers. Additionally, this increase in inventory should help improve housing affordability, which has been at its worst level in decades, according to NAR’s index.
In conclusion, the uptick in pending existing-home sales is a positive indication of a recovering housing market. With more supply expected to enter the market, buyers may find themselves in a better position to make purchasing decisions. This trend towards increased activity and improved affordability bodes well for both buyers and sellers in the real estate market.
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